Page 142 - Town of Bedford FY 2018-2019 Budget.pdf

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TOWN OF BEDFORD
OPERATING POLICY MANUAL
Chapter: Finance Issue (Effective) Date: July 1, 2017
Approval Date: June 13, 2017
Approved By: Town Council

INTERNAL CONTROL AND RISK MANAGEMENT

Section 1. PURPOSE

This policy is to document the Internal Control and Risk Management procedures of the Town of
Bedford (“Town”). The purpose of this policy is to provide measures to manage internal and external
factors that may affect the achievement of the Town’s objectives – whether they are strategic,
operational, or financial. The Town’s risk management focuses on identifying threats and
opportunities, while internal control helps to counter threats and take advantage of opportunities.
The primary objective of this policy is to establish criteria to effectively pursue an integrated,
organization-wide approach to managing the accuracy and reliability of: accounting controls,
financial functions, assets (capital and controlled equipment), operational protocols, and compliance
with applicable laws and regulations.

Section 2. POLICY

A. The Town will maintain internal controls that will be responsive in nature, reflect sound
governmental practices, and remain relevant over time while evolving to meet the specific
needs of the community.

B. The Town will maintain a control environment which will provide a foundation of discipline and
structure specifically cultivating factors of ethical values and competence (quality) of personnel,
direction provided by the Council and effectiveness of management.

C. The Town will maintain a risk assessment environment which will identify and analyze risks
associated with the achievement of organizational goals, inclusive of risks related to the
changing regulatory and operating environment, as a basis for determining how such risks
should be mitigated and managed.

D. The Town will maintain control activities that will ensure management directives are carried out
and any actions that may be needed to address risks to achieving objectives are taken.

E. The Town will maintain information and communication systems that identify capture and
report operational, financial and compliance-related information in a form and timeframe that
enables staff to carry out responsibilities.

F. The Town will maintain monitoring processes that assess the adequacy and quality of internal
control system’s performance and ensure that deficiencies of internal controls are appropriately
reported.

Section 3. OBJECTIVES

A. The primary objectives of the Internal Control and Risk Management Policy shall be as follows:

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